Software companies build business on model of free [Sept 24, 2012]

Submitted on
maandag, 24 september 2012
,
The Boston Globe

In its first seven years, Aras Corp. grew slowly, with a handful of sales people selling its proprietary software to manufacturing clients.

Frustrated by the slow pace of business, founder Peter Schroer had a realization: “Selling corporate software was not profitable, and the scalability of the business was limited to the number of feet on the street.”

So, in 2007, Schroer took a gamble and embraced the open-source model of software that was sweeping corporate computing. He fired the sales teams and started giving away Aras’s software; the company would make money through services, such as technical support, security updates, training, and related consulting work.

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